Will Gold be revalued?

• Currencies & metals drift on Monday after getting whacked the previous night!

• What happens if a missile goes awry?

Good Day... And a Tom Terrific Tuesday to you! The Yankees won their game 1 of the ALCS last night, while the Mets evened their series with the Dodgers... Baseball is baseball to me, I don't need my beloved Cardinals to be playing to watch a playoff baseball game! Although that would be nice if they were playing! Autumn is gone! The weather here is downright chilly, and overnight it is cold... UGH! And you know me... I do NOY enjoy cold weather! Hopefully, this is just a week-long dip in the temps and warmer weather will come back... The Three Dog Night greet me this morning with their song: Mama Told Me Not To Come... 

Well, the dollar buying that went on Sunday night into Monday, where the BBDXY gained 4 index points, petered out during the U.S. session yesterday, thus leaving the BBDXY trading in the same clothes from the previous night. Something strange went on Sunday night, folks... Yesterday, I talked about how I just don't see the reason for the dollar to be bought, and apparently neither do the U.S. traders...  

Gold & Sliver had seen some early morning selling yesterday, with Gold down $5 and Silver down 26-cents... Well, we went through all the gyrations yesterday to end up with Gold down $5 and Silver down 26-cents! Gold closed at $2650, and Silver closed at $31.24... So, a "nothing day" for the metals... 

The price of Oil slid by $3 yesterday and ended the day trading with a $71 handle... I found this to be contra to what I was talking about yesterday, regarding all the saber rattling going on in the world... One would think that outbreaks of war around the world would disrupt Oil deliveries and therefore cause a rise in the price of Oil... I guess that "one" is me, because that's not happening right now... 

The 10-year saw its yield drop 1 basis point yesterday to 4.09%... I hope the Fed Heads are happy to see the yield of the 10-year stop rising... Well, for now that is... 

In the overnight markets last night.... The dollar didn't move much, certainly not like it did the previous night! The BBDXY sits at 1,247 to stat the day today... The currencies all look sick this morning, and in need of some TLC... Gold is up $6 to start the day today, and Silver is up 4-cents... With all the saber rattling going on right now, I'm surprised that Gold and the price of Oil aren't soaring... I guess we'll have to wait, eh?  The thing that pushed the price of oil down to a $71 handle was a report that Israel will not target Iran's Oil supplies... But what happens if a missile goes awry? Oops, my bad... And all hell breaks loose... 

Someone, can you say the Fed Heads?, bought the 10-year last night and drove the yield down to 4.06%... I said the other day that the Fed Heads were working diligently to get the 10-year's yield lower...Why would they do that? Ahhh, grasshopper, come sit, and take a listen... The Fed Heads are under strict orders to get inflation going again to help deal with the debt... And they are having a difficult time doing that, given that they cut interest rate 50 Basis Points, and the markets shrugged it off.. And now bond yields are rising, when they should be falling... Oh My! What's a poor Fed Head to do? 

Yesterday's FWIW article featured James Rickards and his thought on what's driving investors around the world from the dollar... And today, James Rickards talks about the BRICS and the rumor that they will be announcing a Gold Backed currency at their next meeting 10/22-24... Well, isn't that the same thing I talked about yesterday? So, once again this represents another voice for you to listen to...  

The thing I did fail to mention yesterday regarding this new potential Gold Backed Currency is that it won't take the place of the dollar as the reserve currency in the world, right away... It will take time for countries to wait-n-see if the currency works... I'm sure that's the bee in the bonnet of the people putting this currency together... 

I read an article on Bloomberg.com about how the Aussie dollar is receiving a ton of interest and flyers to buying it from hedge fund guys. And the reason they are doing so, is the stimulus that China introduced a couple of weeks ago... If you've forgotten what I explained to you, years ago, then come sit, grasshopper, and listen....  China and Australia are HUGE trading partners... And anything that promotes trading of goods and services is good for both currencies... And since the Chinese renminbi has already seen a ton of buying, the attention now goes to the Aussie dollar (A$)... And what do I always tell you to do? Follow the money! 

The jury is still out on the Chinese stimulus, but from the reports I read, it's only a matter of time for them to begin working...  

The Good Folks at GATA sent me a note yesterday from researcher Alasdair Macleod, game a speech the other day and had this to say: " Inflation isn't finished but the dollar soon may be"... So, he's also on board with the thought that the BRICS Gold Backed Currency will be the kryptonite that ruins the dollar's day... The bandwagon of people that believe this about the BRICS currency, is growing by leaps and bounds, folks... Are you on it? 

Speaking of Gold... did you hear the news? This in from the good folks at GATA: " the Sound Money Defense League and Money Metals Exchange have just announced what they call the first gold-backed college scholarships of the modern era. The sponsors are putting aside 100 ounces of gold to underwrite seven scholarships, ranging from $500 to $2,500, starting this year. Five of the scholarships are available to high school seniors and undergraduate students and two to graduate students."

Chuck again... The youngsters applying for this scholarships must write a response to 4 questions that are asked, of which one of them goes like this: "- How has the Federal Reserve System helped or hurt the American economy?

Man, do I ever wish that I was a young man, knowing what I know now so that I could answer the questions and win that scholarship!  

And going further with Gold this morning... Ed Steer featured a video in his letter last week, where Gold was discussed getting revalued...  I have a piece of the video's verbiage,  "Miles Franklin Precious Metals CEO Andy Schectman asserts that central banks are strategically accumulating gold, while hinting at a potential revaluation that could significantly impact the global economy. He references a historical conversation involving Henry Kissinger, emphasizing that maintaining a gold standard provides countries with substantial leverage in international finance. Andy believes that this revaluation could be a method for central banks to manage debt and inflation without resorting to outright hyperinflation or default. He warns that as more people begin to recognize gold's value, the availability of precious metals will dwindle, making proactive investment crucial now. Ultimately, he posits that those who hold gold will hold the power in an increasingly uncertain financial landscape."

Chuck again... Hey! I kinda like it when I can get quotes from people that use up all the space of my letter! HA!

Before we head to the Big Finish today.... Well, I need to apologize for the wrong header to yesterday's Pfennig... I forgot to change it, simple as that, no excuses... Like I was up most of the night... No... I simply forgot... The heading was supposed to be: What's Going On Here?

The U.S. Data Cupboard doesn't have any real economic data for us today, or tomorrow, and on Thursday, we'll see Retail Sales for Sept. And Industrial Production and Capacity Utilization for Sept... So, nothing today or tomorrow and Thursday will be busy... The Butler Household Index (BHI ) indicates that Retail Sales will show a fair amount of sales in the month of Sept.... I recall many days of deliveries being left at our door! 

To recap... The dollar buying that took place Sunday night/ /Monday morning ended in the U.S. session yesterday... But there was no dollar selling or profit taking, going on yesterday, so the BBDXY ended the day up 5 index points that were made in the overnight session... Gold & Silver went through gyrations yesterday to end up in the same clothes they were in during the early morning trading... 

For What It's Worth... Well, lookie here! We have the great Ray Dalio for our FWIW writer this morning... recious Metals CEO Andy Schectman asserts

Here's your snippet: "In a recent series of interviews, billionaire investor Ray Dalio, founder of Bridgewater Associates, the world's largest hedge fund, has sounded the alarm on an impending economic paradigm shift that could dramatically reshape the financial landscape. Dalio, known for his deep understanding of economic history and market cycles, is urging investors to reconsider their portfolio strategies, with a particular emphasis on gold allocation

"If you don't own gold, you know neither history nor economics," Dalio emphatically stated, underscoring the precious metal's crucial role in navigating the turbulent economic waters ahead.

Dalio's concerns stem from what he perceives as unsustainable levels of government and corporate debt, coupled with aggressive central bank policies that are devaluing currencies. He predicts that within the next 18 months, we may witness a significant economic contraction and a restructuring of debt and finance that will catch many unprepared.

"We are currently in the late and perilous phase of the long-term debt cycle," Dalio explained. "The levels of debt assets and liabilities have soared to such heights that it has become challenging to offer lender-creditors a sufficiently high interest rate in relation to inflation."

The investment guru foresees a challenging scenario where the U.S. Treasury will be forced to issue substantial amounts of debt, potentially surpassing available demand. This could lead to either significantly higher interest rates or extensive money printing by the Federal Reserve, further devaluing the currency.

In light of these projections, Dalio is advocating for a minimum 10-15% allocation to gold in investment portfolios. He views gold as a crucial diversifier and a hedge against currency devaluation and geopolitical uncertainties."

Chuck again...Nothing new here... Especially the allocation ratios... for over 15 years, I spoke at conferences all over North America, Central America and even in London, once and I would tell attendees that they needed to have an allocation of 10-15% in metals for their investment portfolios, when Gold's price was strong, and even going as high as 20%... So, what's your allocation?  

Market Prices 10/15/2024: American Style: A$.6719, kiwi .6094, C$ .7235, euro 1.0907, sterling 1.3079, Swiss $1.1605, European Style: rand 17.5591, krone 10.7103, SEK 10.3592, forint 357.18, zloty 3.9369, koruna 23.1401, RUB 94.25, yen 149.25, sing 1.3088, HKD 7.7676, INR 84.03, China 7.1137, peso 19.51, BRL 5.6052, Dollar Index 103.12, Oil $70.71, 10-year 4.06%, Silver $31.30, Platinum $988.00, Palladium $1,020.00, Copper $4.37, and Gold... $2,656.12.

That's it for today... Well, my breathing is getting much better, and the water weight is dropping off me quickly... I need to keep improving the breathing so I can return the oxygen tanks and oxygen making machine... it is what it is, but it is a pain in the rear! I'm still holding out hope that I won't need the surgery to take the fluid away from my heart... Kathy's aunt said to me on Sunday, "I bet you wish you could just be back to my normal self"...  I thought about that later, and thought, "my normal self, is that before or after cancer?" oh well... Life goes one... my appt. calendar gets really full the rest of the week starting tomorrow.. On Friday, this week I have 2 doctor appts! Everybody wants to see that I'm still alive! Tommy Tutone takes us to the finish line today with his 80's song: 867-5309/ Jenny... Every band in the 80's played that song... I hope you have a Tom Terrific Tuesday today, and I hope you will Be Good To Yourself!